Ally Financial soared past Wall Street’s expectations in the second quarter. But its auto lending business, the bank’s specialty, still struggled with some tariff-induced hurdles. “Even as things feel like they’re turning a corner,” Brian Foran, an analyst at Truist Securities, told, “it just seems like there’s always something getting in the way.” One obstacle was the chaos over U.S. trade policy, which has been in flux since early April. As tariffs snarled supply chains and delayed imports, car dealers struggled to refill their inventories. Meanwhile, the fear of future tariffs pulled forward consumer demand, with customers racing to buy cars before prices went even higher. The result was that cars spent less time on lots, which in turn meant less need for loans to dealerships — and less profit for Ally. Meanwhile, the bank’s overall earnings surged past Wall Street’s expectations. In the second quarter, net income was $324 million, far outpacing analysts’ average estimate of $242.6 million, according to S&P. It also marked a 70% increase from the same period last year. The results were a far cry from this year’s first quarter, when Ally restructured its balance sheet, putting its quarterly bottom line in the red. Earnings per share for that period were negative 82 cents, and the company reported a net loss of $225 million. This was primarily because Ally sold off $2.5 billion of its investment portfolio, in order to ease pressure on underwater bonds and free up capital to buy more liquid securities. One quarter later, the restructuring appears to have yielded benefits. Much of the growth in revenue during the second quarter, Ally said, was thanks to a $35 million jump in the value of equity securities. “Ally’s focused strategy is working, and you’re starting to see it in our results,” Rhodes said. Apart from auto lending, Ally’s other units showed mixed results. The insurance segment took in $28 million in income, up $68 million from the same period last year. But the company’s corporate finance unit earnings fell $13 million year over year to $96 million.